10 Things That Would Be Different If The Federal Reserve Had Never Been Created

By Michael Snyder, on January 11th, 2011

The vast majority of Americans, including many of those who believe that they are “educated” about the Federal Reserve, do not really understand how the Federal Reserve really makes money for the international banking elite. Many of those opposed to the Federal Reserve will point to the record $80.9 billion in profits that the Federal Reserve made last year as evidence that they are robbing the American people blind. But then those defending the Federal Reserve will point out that the Fed returned $78.4 billion to the U.S. Treasury. As a result, the Fed only made a couple billion dollars last year. Pretty harmless, eh? Well, actually no. You see, the money that the Federal Reserve directly makes is not the issue. Rather, the “magic” of the Federal Reserve system is that it took the power of money creation away from the U.S. government and gave it to the bankers. Now, the only way that the U.S. government can inject more money into the economy is by going into more debt. But when new government debt is created, the amount of money to pay the interest on that debt is not also created. In this way, it was intended by the international bankers that U.S. government debt would expand indefinitely and the U.S. money supply would also expand indefinitely. In the process, the international bankers would become insanely wealthy by lending money to the U.S. government.

Every single year, hundreds of billions of dollars in profits are made lending money to the U.S. government.

But why in the world should the U.S. government be going into debt to anyone?

Why can’t the U.S. government just print more money whenever it wants?

Well, that is not the way our system works. The U.S. government has given the power of money creation over to a consortium of international private bankers.

Not only is this unconstitutional, but it is also one of the greatest ripoffs in human history.

“The people must be helped to think naturally about money. They must be told what it is, and what makes it money, and what are the possible tricks of the present system which put nations and peoples under control of the few.”

It is important to try to understand how the international banking elite became so fabulously wealthy. One of the primary ways that this was accomplished was by gaining control over the issuance of national currencies and by trapping large national governments in colossal debt spirals.

The U.S. national debt problem simply cannot be fixed under the current system. U.S. government debt has been mathematically designed to expand forever. It is a trap from which there is no escape.

Many liberals won’t listen because they don’t really care about ever paying off the debt, and most conservatives won’t listen because they are convinced we can solve the national debt problem if we just get a bunch of “good conservatives” into positions of power, but the truth is that we have such a horrific debt problem because it was designed to be this way from the beginning.

So how would America be different if we could go back to 1913 and keep the Federal Reserve Act from ever being passed? Well, the following are 10 things that would be different if the Federal Reserve had never been created….

#1 If the U.S. government had been issuing debt-free money all this time, the U.S. government could conceivably have a national debt of zero dollars. Instead, we currently have a national debt that is over 14 trillion dollars.

#2 If the U.S. government had been issuing debt-free money all this time, the U.S. government would likely not be spending one penny on interest payments. Instead, the U.S. government spent over 413 billion dollars on interest on the national debt during fiscal 2010. This is money that belonged to U.S. taxpayers that was transferred to the U.S. government which in turn was transferred to wealthy international bankers and other foreign governments. It is being projected that the U.S. government will be paying 900 billion dollars just in interest on the national debt by the year 2019.

#3 If the U.S. government could issue debt-free money, there would not even have to be a debate about raising “the debt ceiling”, because such a debate would not even be necessary.

#4 If the U.S. government could issue debt-free money, it is conceivable that we would not even need the IRS. You doubt this? Well, the truth is that the United States did just fine for well over a hundred years without a national income tax. But about the same time the Federal Reserve was created a national income tax was instituted as well. The whole idea was that the wealth of the American people would be transferred to the U.S. government by force and then transferred into the hands of the ultra-wealthy in the form of interest payments.

#5 If the Federal Reserve did not exist, we would not be on the verge of national insolvency. The Congressional Budget Office is projecting that U.S. government debt held by the public will reach a staggering 716 percent of GDP by the year 2080. Remember when I used the term “debt spiral” earlier? Well, this is what a debt spiral looks like….

#6 If the Federal Reserve did not exist, the big Wall Street banks would not have such an overwhelming advantage. Most Americans simply have no idea that over the last several years the Federal Reserve has been giving gigantic piles of nearly interest-free money to the big Wall Street banks which they turned right around and started lending to the federal government at a much higher rate of return. I don’t know about you, but if I was allowed to do that I could make a whole bunch of money very quickly. In fact, it has come out that the Federal Reserve made over $9 trillion in overnight loans to major banks, large financial institutions and other “friends” during the financial crisis of 2008 and 2009.

#7 If the Federal Reserve did not exist, it is theoretically conceivable that we would have an economy with little to no inflation. Of course that would greatly depend on the discipline of our government officials (which is not very great at this point), but the sad truth is that our current system is always going to produce inflation. In fact, the Federal Reserve system was originally designed to be inflationary. Just check out the inflation chart posted below. The U.S. never had ongoing problems with inflation before the Fed was created, but now it is just wildly out of control….

#8 If the Federal Reserve had never been created, the U.S. dollar would not be a dying currency. Since the Federal Reserve was created, the U.S. dollar has lost well over 95 percent of its purchasing power. By constantly inflating the currency, it transfers financial power away from those already holding the wealth (the American people) to those that are able to create more currency and more government debt. Back in 1913, the total U.S. national debt was just under 3 billion dollars. Today, the U.S. government is spending approximately 6.85 million dollars per minute, and the U.S. national debt is increasing by over 4 billion dollars per day.

#9 If the Federal Reserve did not exist, we would not have an unelected, unaccountable “fourth branch of government” running around that has gotten completely and totally out of control. Even some members of Congress are now openly complaining about how much power the Fed has. For example, Ron Paul told MSNBC last year that he believes that the Federal Reserve is now more powerful than Congress…..

“The regulations should be on the Federal Reserve. We should have transparency of the Federal Reserve. They can create trillions of dollars to bail out their friends, and we don’t even have any transparency of this. They’re more powerful than the Congress.”

#10 If the Federal Reserve had never been created, the American people would be much more free. We would not be enslaved to this horrific national debt. Our politicians would not have to run around the globe begging people to lend us money. Representatives that we directly elect would be the ones setting national monetary policy. Our politicians would be much less under the influence of the international banking elite. We would not be at the mercy of the financial bubbles that the Fed has constantly been creating.

There is a reason why so many of the most prominent politicians from the early years of the United States were so passionately against a central bank. The following is a February 1834 quote by President Andrew Jackson about the evils of central banking….

I too have been a close observer of the doings of the Bank of the United States. I have had men watching you for a long time, and am convinced that you have used the funds of the bank to speculate in the breadstuffs of the country. When you won, you divided the profits amongst you, and when you lost, you charged it to the Bank. You tell me that if I take the deposits from the Bank and annul its charter I shall ruin ten thousand families. That may be true, gentlemen, but that is your sin! Should I let you go on, you will ruin fifty thousand families, and that would be my sin! You are a den of vipers and thieves. I have determined to rout you out and, by the Eternal, (bringing his fist down on the table) I will rout you out.

But we didn’t listen to men like Andrew Jackson.

We allowed the Federal Reserve to be created in 1913 and we have allowed it to develop into an absolute monstrosity over the past century.

Now we are drowning in debt and we are on the verge of national bankruptcy.

That was the Second Bank of the United States, and Jackson did rout it out.

Kevin

The above may be technically true but without a standard and with fractional reserve banking too many dollars can still be created chasing too few goods insuring inflation.

Whoever or whatever creates “money” would have the ability to debase the currency without some fixed recognized standard to base the value of the money on. The standard need not be gold but must possess relative rarity and high worth without the ability of finding / creating more. Tulips were once tried and carved rocks tried too; neither worked for too long. Money could be based off of productivity IF (big word)some honest accounting would measure the productivity accurately.

Spencer

retarded post.

The world would be a completely different place, it’s silly to think you can isolate what America would be. booms/busts would have all occured at different times, perhaps had there been no federal reserve there would have been no way to finance WW2, allowing the Nazis to win the war. There might have been waves of bank runs like the centuries before, likely wouldn’t have been able to finance the nuclear arsenal you built in order to satisfy MAD with the Russians…and of course there is the possibility of utopia as you suggest….but highly unlikely.

If you want to debate what is occuring and the current relevance of the federal reserve that’s fine…but you can’t attempt to repaint the present when changing a massive variable in humanities history

One thing is likely: Americans would have still borrowed and spent well beyond their means

Even better than not having the Fed would be not to have the Federal Government, which wouldn’t be needed if there was not so much meddling with the economy.

In a free market economy, the country needs regulators, who don’t have to be sitting together in one place. One could regulate financial markets from New York, food from Houston, healthcare from Los Angeles and so on…

There are very few things that need to be delt with at a national level and from one place.

One can think about the Army and the Defense budget.

The latter should be considerably reduced, so much so that the governors of the 50 states could meet once every quarter and deal with the subject on the occasion. No one is seriously threatening to invade the US; except maybe for some Mexicans, who come unarmed anyway…

In short, if governments (at local level) were doing what they are supposed to do, that is, the least possible, there wouldn’t be deficits and debts, and the need for a central bank to finance them.

I just published a post dealing with the same subject (public debt).

Click on my name to visit my blog.

michelle

Just end the fed – they never put any value into the system, they are a parasite and if our representatives had any “cajones” it would be a done deal…

Michael Roanhaus

It’s not that we didn’t listen to Andrew Jackson, it’s that the bankers sneaked the Federal Reserve Act into law during Christmas break. The financial elite found a loophole and exploited it, just like they do now to avoid paying taxes…..They truly are vipers and thieves!

Excellent article. It’s just sad to witness what’s happening with the Federal Reserve’s control of government. If the Treasure started printing its own money. According to an internet article, both Bobby Kennedy and John F. Kennedy wanted to put the control of money back into the Treasury and away from the Federal Reserve.

I hate articles like this. Who, exactly and specifically, are the “they?”

They, the elite. Come on. Shee-it. You need to give specific names. Chairmen of companies. Private individuals. How much do they make, each. Did Charles O. Holliday make $2 billion last year (Chairman of the Board of BofA). Did Sarah Bloom Raskin make $18 billion last year(Fed Reserve Director)?

I don’t disbelieve anything here. However…names. I want names.

Maria

What would America be if the Federal Reserve and the IRS had not come into existence?

SOVEREIGN…that is what we would be!!!

Instead we are ruled by self-serving elites through their bought and paid for corrupt Congress!

Federal Reserve + IRS + Congress = CORRUPTION

Xiao Gang

Spencer wrote:

>had there been no federal reserve there would have been no way to finance WW2, allowing the Nazis to win the war

Please note that both Kennedys were assassinated under circusmtances that have been kept mysterious and controversial. JFK wanted to issue silver certificates as he saw the embedded evil of the Fed back then and wanted to reduce or eliminate their power.

Almost no one in the blogosphere I see talks about who is running the show of the global banking cartel. Fascinating references are out on the internet about the interrelationships between the Rothschilds, the Rockefellers (funded by the Rothschild banking cartel originally), Warburgs, Prescott Bush and others, the potential connections with Hitler, the war profiteering and all the rest. We may have won the Revolutionary War, but the Brits continue some control over us today with the private management of the Federal Reserve and the control by these most wealthy families. Rothschild was involved in the start of the War of 1812 with a dispute with the USA about the First Bank of America not being renewed after its initial charter lapsed in 1811 and was not renewed. A number of other wars have some evidence to have the signature of the banking cartel behind them. So it is not entirely monetary in nature.

The banking cartel counts on the fact that almost no one will take the time to understand the structure and the history as to how the current setup was truly created, and that it goes back almost 300 years with its roots in England. Greed and evil will continue as long as the general public remain uninformed.

Greying Wanderer

The federal reserve and international banking elite have been the serpent in the garden.

Lou

I read this blog every day and I love it, but I didn’t like this post so much.

One of the greatest teachers I ever had, a history teacher, once told me:

“There are no ‘IFs’ in history”

That’s so true. This is all just speculative; there’s just no way of knowing what the “what-if” would be, it’s better to focus on the problems at hand and think about the future, because today is tomorrow’s yesterday.

William

Anyone with the reading comprehension of a 10 year old would conclude the FED is UNCONSTITUTIONAL after reading the part of the US Constitution that assigns to the US Congress the responsibility of creating money and regulating its value. So, WHY has the FED existed for almost 100 years, destroying America in that time?? Because YOUR US Representative or US Senator is afraid that some criminal, whining, racist bigot will spend the money necessary to defeat them in the next election, after throwing around false cries of antisemitism.
That, ladies and gentlemen, is the story of the destruction of America

bob

Its horrible and dangerous slope. Your horrible suggestion right out of Communist Manifesto !

“ 5 CENTRALISATION OF CREDIT IN THE HANDS OF THE STATE, BY MEANS OF A NATIONAL BANK WITH STATE CAPITAL AND AN EXCLUSIVE MONOPOLY. “

Does it mean that low life ruble ( General Public ) through elected representatives will define sacred money policy ??

Horrible , horrible communist Ideas. Where the place for distinguished banking Families of Goldman Sachs , Bank of America etc?

Cary

The federal reserve, the treasury, wallstreet, mainstream media, the whitehouse, and congress are all owned and operated by the same group of people, many of whom are dual citizens.

This problem will not change until the country realizes this, and the country may never realize this because the media prevents the average person from grasping it.

Henry Ford was right about alot of things.

Matt

No, we won’t wake. Americans want this debt without directly knowing it. They want it because they want their “entitlements” – social security, medicare, Rx drugs, unemployment insurance, food stamps, etc. If you try to take those away Americans screem bloody murder, which you can translate to: if you take away the debt, Americans scream bloody murder. Americans want their debt (entitlements), Americans need their debt (entitlements), Americans will stage protests for their debt (entitlements), etc. Bottom line: Americans LOVE having a big national debt. We are a nation of zombies.

America’s founding fathers knew from Europe that if the ruling class had the power to create money they would do it to their advantage so they limited the government to coining gold and silver and not printing into circulation worthless paper. Because the Fed never ‘printed’ the money to pay the interest on the money borrowed by the U S it is impossible to pay them back, but also the interest on every loan ever made was never created or the pay out of every insurance policy or the increase in value of every investment! A House of Cards that like all previous empires will fall after 200+ years. The only hope is to start a new nation before we are dragged off to debtor’s prisons. Check out http://www.jcbooks.org to see the possiblities.

The question of how to set a standard for fractional reserve fiat currency has been nicely addressed by the late Jude Wanniski in his proposal for a “gold dinar” (which you can look up). This can be achieved without the need to own a reserve of gold (or whatever). A set price of gold is the mandated target, and the money supply is accordingly enlarged or made smaller, as necessary. Owning a reserve of gold, and buying or selling gold as necessary would be an additional mechanism for achieving a stable currency.

“One thing is likely: Americans would have still borrowed and spent well beyond their means”

Oh so true.

Michael2

I have long agreed that A. Jackson set the standard for how a leader should manage the fiscal matters of a nation. Another thing about him I am sure at least some you know is that Jackson is the first and only President to bring U.S. debt to zero. And he left a budget surplus of 55 million dollars which was a quite a sum in those days.

I noticed the author does not name who owns the Federal Reserve and I don’t think many know who does actually own or has stock in it. Here is one quote I found in an article by Ellen Hodgson Brown, J.D., who has the website, webofdebt.com

“Some people think that the Federal Reserve Banks are United States Government institutions. They are private monopolies which prey upon the people of these United States for the benefit of themselves and their foreign customers; foreign and domestic speculators and swindlers; and rich and predatory money lenders.” The Hon. L. McFadden, Chairman of the House Banking and Currency Committee in the 1930s

I am amazed that the folks from Harvard, Princeton, Yale, Oxford, etc. do not see this or are afraid to speak up about it. Actually, I am not surprised many are afraid of the International Banking Cartels as I have read stories, rumors and conspiracy theories that indicate there is much to fear if someone was to challenge them. There are stories that allege national leaders have been threatened and tricked into wars by banking cartels so they could accomplish their goals which is always to get a nation into debt. They certainly did not mind threatening the last Congress with a complete economic collapse in the world’s economies and predictions of civil strife and riotous chaos by U.S. citizens if they did not get the money/security for the bailouts and bonuses. There also have been rumors of assassinations committed by the financial elite as well. And there have been countless suspicious deaths of reporters, banking insiders, challengers, etc. associated with the banking cartels. Some even allege JFK’s assassination was really motivated by financial matters concerning the Federal Reserve, specifically his move to reinstate the silver standard.

Then there are the conspiracies theories of a global wide takeover by the financial elite that allege they are herding the world’s population to a one world banking and government system. Several authors I have read allege that the world’s markets are being deliberately destabilized so people will become so fearful that they’ll except any plans, including one world gov. and economic system as the solution to the world’s financial crisis. I do not know if this true or not but I know I do not put anything past the “people” who make the international banking cartels run.

Some say the 2009 movie called, The International is a good case of art imitating real life. In it a bank called the International Bank of Business and Credit (IBBC) is alleged to be involved in illegal activities including money laundering, arms trading, murder and the destabilization of governments.

That is why it takes absolutely fearless people like, A. Jackson, to go against them. Most politicians seem to have the, if you can’t beat them, join them or go along to get along, mentality when it comes to what is really going on in Washington D.C. and the world.

The fight with the Federal Reserve is thee most challenging one of our generation and in the history of United States of America.

It is my humble opinion the world would be a much better place without the Federal Reserve, the Chamber of Commerce, Wall Street, the World Trade Organization, the IMF, and the World Bank and throw in the U.N just for good measure.

Steve Sweigart

“perhaps had there been no federal reserve there would have been no way to finance WW2”

“likely wouldn’t have been able to finance the nuclear arsenal you built”

Spencer, Two perfect examples of the harm the Fed has done. Both of these examples probably wouldn’t have happened without the Fed.

“One thing is likely: Americans would have still borrowed and spent well beyond their means”

And who would be lending the money? Without the Fed manupilating the money supply and interest rates, the money would NOT be available for lending to those individuals and businesses that want to borrow beyond their means, at lease not at a rate most would be willing to pay.

Steve

There isn’t a country on this planet that requires a private central bank in order to be wealthy. I completely agree with this article and yes I do understand economics very well. This central bank called the “The Federal Reserve System” is using the American People to justify its existence. They wouldn’t dare print or borrow money without somebody paying it back. Heavens no.

If we can’t get rid of the Federal Reserve System, then disconnect “We The People” from it. No more IRS. Let them print money without it being paid back. The printed money never existed before so this Central Bank has nothing to lose. This is what our founding fathers had in mind.

Be careful in your promotion of “Debt-free money”. It is quite possible to print oneself to destitution with “debt-free” money as well (Greenbacks come to mind …). Money should be free, in which case people have always chosen commodity-backed money that cannot be counterfeited.

It’s really an academic question now of what to do with the Fed. If we abolish it, the economy will collapse. If it continues to run amok, the economy will collapse. There is no realistic way to pay back $14,000,000,000,000 (and growing) in debt, espcially with politicians and people who lack any will to do anything about it. The best we can do that this point is prepare and survive the coming collapse.

What is often overlooked is the total transfer of wealth not only from the people but also from entrepreneurial capital to speculative capital. Thus ownership of great American businesses moves from the men and women who built those juggernauts to the sleazebags who have access to free capital. The manufactured boom and bust cycles are the utimate instruments of wealth transfer. At the time of the great depression, huge tracts of fram land, prime New York Real Estate, and critical manufacturing facilities were snatched up for pennies on the dollar by those who knew the collapse was coming and were pre-positioned to take advantage of it. The same process is happening and worse it is supported by both democratic and republican administrations because those individuals were bought for pennies on the dollar as well. The Federal Reserve is pure EVIL.

****

It is a system that never shoud be allowed to return. From 1861-1865 American fought to end slavery and physical bondage. Since 1913 every American, accept those connected to the Fed, have experienced debt slavery. Don’t believe me look at the student loan disaster, look at 36% interest on credit cards, look at crooked mortgage loans that are designed to fail and protected by the government, and finally look at a nation that is constantly in wars, because war = debt = profit for the bankers.

richard braverman

Is anyone in the forum prepared to discuss the role of Rothschilds and a noticeable common heritage of a large majority of Central Bankers?

Nothing will change, until Americans can freely and openly engage in debate on this issue without fear of recriminations and slander.

The FED (and the crimianl Wall Street/City of ondon banks) is just one part of a very twisted worldview that seeks to consolidate the control of the planet and the lives of billions of people into a very few hands.
.
.

marxbites

America was formed under a silver dollar standard, and when it went to a gold std in the late 1800’s, did swimmingly for twenty years until the FED, but WW1 needed fiat financing to fatten Morgans, etc., ALL floundering from their failed attempts at monopoly, and thus did a Mussolini to evade competition.

The manager’s job is to measure DEFAULTs and collect INTEREST exactly equal to them, thus assuring INFLATION is always zero.

No government or private concern has ever observed this simple relation. Rather, they attempt to measure INFLATION and tweak INTEREST collections according to the “heat” they sense in the economy.

Until the managers of the exchange medium are constitutionally bound to conform to the above relation, we will have business cycles and graft at the highest levels.

Speaking of things being different. If the managers of the US dollar (be they public or private) had managed according to this relation for the 98 years since the formation of the Fed, today’s dollar would buy as much as a 1913 dollar … instead of 1/25th as much … and there would have been no so-called business cycles.

Todd Marshall
Plantersville, TX

jeff

You need to explain how one “issues” debt free currency. All 10 benefits sounds great, but I cannot be convinced it is rationale because I do not understand the mechanism of debt free money issuance. A follow up article?

mark@yaoo.cm

haha

Jakester10

Tell me if I am correct, or partly so.
It’s my understanding that Woodrow Wilson was the SNAKE that pushed the U.S. Gov. into exception the Fed. He was running for POTUS and it was clear he was not going to make it. Most countries after WWII needed money to finance their “Standing Armies” so they could continue to Rob and Kill each other to benefit the rich, and the world money system was fragmented. Banking elites promised Wilson they would finance his run for the presidency amongst other things to get him elected, if he would convince Congress after he got in to form the Fed. They bought it because he said the U.S. president would appoint the Fed Chairmen, a U.S. citizen. That sounded good to Congress and the American people, and the fools bought it!

Jerry Fares

The Federal Reserve is te BEAST and must be abloished!! Destroyed! The US is broke and busted!! Because of the FED. Period. It’s just a matter of time when Obama or the next preidient steps up to the plate and anounces to the world, ” It gives me great sadness to announce that The United States of American has DEFAULTED on all debts” Then what???? I wish someone would explain what happens next?? Maybe a lot of good will come from this. First all military troops from around the world will have to come home. They will then be deployed to secure ALL our borders. Second, we’ll have to get back to work (massive job creation that was out soursed) manufacturing all things that we buy daily from China. Thank GOD we are a counrty that is VERY RICH in natural resourses. Energy will be mined here and stay here. (coal, oil, natural gas) No more foreign oil, cause our money is no good. Insist on Honesty and transparency in a much smaller governmnent. Create a new gold backed currency through the Treasury. And the list of good things will go on and on. Hopefully we as a nation will learn from our past and build a wonderful future for all. I’m very optamitic for thr future of our children and grandchildren, but he immediate future is oing to be very very painful. respectfully submitted

mark@yaoo.cm

imm imss yuou do me how sayo ?

BeTrueSeekTruth

Ending ALL central banks throughout the world would end the ability of the few to control the many. The issue is actually being fought on the psychological plane. The media will always hinder this idea from taking hold. By this, it is evident that they are a necessary tool sponsored by the international banking elite. The international banking elite have no talent and offer nothing to society. This is why a society in their control is damned. They too are damned amongst themselves because by their nature they are predatory. When there are no prey left to feed on, the predator becomes the prey and this is their subconscious goal. In other words, they hate themselves so much, and have so much disdain for their own mountainous deception and uncontrollable parasitic propensities that their agenda, if accomplished, will ultimately result in their own final destruction. The planet that they are hell bent on destroying in the process, will recover after a few million years of self regeneration. Then we will begin again. Or maybe, this is not the first time this cycle has occurred?? In fact, the fate that the international banking elite wish on themselves is much much more harsh then even awake humanity wishes on them. For the most part, we want them to give back what they stole and go to prison for the rest of their days. They seek to utterly destroy themselves even if on a conscious level, they don’t recognize that their actions, left unchecked can only end this way and no other.

American Patriot

JFK signed Executive Order #11110 that would do away with the “Federal Reserve” which is NOT Federal by any means

Poopy

Spencer, you are completely and totally ignorant. Better to keep your mouth shut rather than make yourself look like such an out of the loop buffoon.

Pixie

This is what TPTB want. They don’t want us to be debt free, prosperous and strong. They want us cowering and defenseless so they can rule us.

If every high school and college kid in this country read “The Creature From Jekyll Island” by G. Edward Griffin, we would have a revolution and the Fed along with the Fed Gov’t wouldnt be around. I’m looking forward to the most devestating sovereign debt crisis in the history of mankind….the good ole US of A!!!

Stray Cat

Post is irrelevant; what’s done is done. Water under the bridge. We’re screwed. End of story. Beans, bullets, band aids. Nuff said.

Paul

Just why did you leave the word “God” out of Jackson’s quote????

Michael

Paul:

That is what Wikiquote says that original quote is. If there is another source that says that the original quote contained the word “God” please let me know.

I would not leave the word “God” out on purpose. I am a Christian and I talk about God a lot. 🙂

mark@yaoo.cm

haha ?

Bill K

To Richard Braverman,

Please note my comment at 7:57 AM this morning discussing the Rothschilds. I could post a link about this heritage of 300 years, but what interests me as well is how everyone talks past each other and does not take the time to observe what others have written. I did old fashioned research on this question because I was interested, and will continue to do so because there is not nearly enough reference information on the banking cartel due to the shadowy and mysterious ways these wealthy families operate. There is a code of conduct as well for the financial elite that goes back to the 18th century when these evil men and families began to corrupt western society.

It is quite hard to know if and when this ever stops, but it will not stop as long as the American public do not unite as being oppressed on this question. The top 1% stand no chance if the other 99% can agree they are the problem, but we can’t even agree as to the injustice performed against Rep. Giffords so what chance do we have against the wealthy and powerful. The U is USA has been not applicable for some time now, and I don’t believe we will be united again for the foreseeable future due to the polarizing and divisive nature of our politics and the intolerance people have to their fellow citizen that may have different views. Sad indeed.

garyb444

One of the clearest explanations of the monstrosity that is Federal Reserve that I’ve seen yet.

Annette

Can the admin of this blog/website put up an article telling us how to end the Fed. What do we do to end the Fed?

Former Banker

They claim the Fed is owned by the member banks. This is true of the Class B stock, but all of the Class A stock is owned by about a half dozen English and European banks. I have their names on a tape somewhere. I’ll try to locate it.

Let’s not be blackmailed again, this time by Berstankee. The last time it was Hank Paulson that large headed bully ape. Want to raise the debt ceiling? NO! How do you like them apples Bernanke.
Then when they purposely trash the stock market and the economy, investigate how they did it, and throw them in jail for treason against the American people.

Are we going to default on our national debt? Maybe so, who cares, let it tank. Then we will start over with a clean slate, remove the Fed, print our own money and never make the same mistake again.

Flavius

In the year 2020

In lieu of cash redemption of all outstanding US Treasuries, the Interim Committee on United States Debt Restructuring has established the following exchange equivalancy table to convert $25 trillion defunct dollars into commodities:

22 billion bushels of corn.
16 billion bushels of wheat.
45 billion feet of lumber.
16 million tons of copper.
122 million pounds of beef.
160 million pounds of pork.

Where you find the labor to pull this off on a subsistence diet is not our problem…

MichaelHerrick

If you look around us and start counting on your 1000 fingers all the different businesses that are English owned English operated from American Idol to Mother Prudential Insurance Co. you may come to the same conclusion that I have that the English threw the Rev. war in 1870’s. They (the English) already had most of the banks in place. So it’s not to hard to imagine who (they) are that control the federal reserve system. Ane i think you can take that to the BANK. ps I’m sure we would have beaten them (the English) sooner or later. Just think what a bomber/tank/helmet/bayonet/c-ration would have cost us in WW2 without the interest paid to the federal reserve.

WhatsYourName

Disappointed that everyone is listing a bunch of vague generalities. Who exactly is benefiting from all this stuff being written. Not companies and organizations, but people. How much are they specifically earning?

I’ve heard and read this same stuff that’s being said in these comments for 30+ years, but no one ever seems to name names AND how much money they specifically made.

Without listing people and how much money they made, everything above is completely meaningless.

olde reb

A standing applause for the writing, but perhaps it could have gone further.

As needless as an interest bearing national debt may be (as proven by the period between 1840 and 1913) , the $12.5 billion of interest retained by the Fed last year is a mere distraction from what is not shown on the accounting books revealed by the Fed.

The scheme is touted as having the Treasury Department auction T-securities to the public (via Primary Dealers) to fund the deficit spending. Such a procedure would not in any conceivable way permit an expansion of the monetary system; there could be no inflation. It would be a simple transfer of wealth from the public to the government–with a receipt called a security. All taxation is the same transfer of wealth. The scheme is a brilliant disinformation.

The securities being auctioned belong to the Fed. They were given to the Fed and the Fed in turn credited the account of the Treasury in the face amount of the security. Voila!!! Fiat money that Congress can spend and the Fed will not bounce the checks.

Do you now see how Wall Street financiers have bought controlling interest in all major businesses, media, utilities, etc.?

Jak

Thank you, Michael Snyder for the post. Thank you, Laura.
The National Emergency Employment Defense Act, NEED, (H.R. 6550) introduced in the House of Representatives on 12/17/10 by Congressman Kucinich addresses the issue of reconstituting the Fed, the end of the fractional reserve and the end of private money creation.
The NEED Act proposes a sound national monetary policy which makes it possible to address infrastructure, education and other issues without increasing the national debt.
Here are some important points of the Act:
(1) Restore the power to issue nation’s money to Congress as the Constitution stipulates (Article1, Section 8);
(2) Reconstitute the Federal Reserve from a bank of issue outside of government control to a bureau w/in the Department of the Treasury, i.e. under the system of checks and balances;
(3) End fractional reserve which allows banks to create money out of thin air (debt money, i.e. credit) and to loan it to the government (at all levels), to businesses and to consumers. Private debt money creation has caused a public and private debt of around $53 trillion with annual interest $3 trillion. It fueled speculative bubbles, but not a productive infrastructure investment; according to the NEED Act a bank must treat deposits as property held in trust and not as bank’s asset and a source of credit;
(4) Move to government issued debt-free money, United States Money. Government controlled money power works to the benefit of society by upgrading our infrastructure, including education and health care;
(5) Issue a Citizens Dividend to fill the $4 trillion gap between national GDP and population’s purchasing power (an example of a trickle-up economics).
Historically the U.S. government created money has had superior record to that of private money. The Greenbacks, the Continental and the colonial scrip in PA are proof to this. Economics and history textbooks drill propaganda.

If the Federal Reserve did not exist, would not need Social Security. The money earned while younger and stronger has more purchasing power when you are older.

mark@yaoo.cm

ese po haha ok ?

Hamza

You are claiming that deflation is a GOOD thing!?!? That makes zero sense and would cause our economy to collapse like Japan.

Uncle B

A corrupt and evil Capitalism draws to an end and leaves behind it a crumbling Detroit City, the death of the American automotive industry, the end of heavy smokestack industry in America, the loss of the manufacturing industry in America to the Asians, a mighty, totally foreign oil dependent, military, trade deficits, national debt, a broken workforce,a worn and broken infrastructure, mines mined out, oil wells sucked dry, farm fields burnt by over-production, water-ways polluted un-necessarily,and huge people, addicted to overly rich food, for the profit of the corporations!
It is simplistic to blame the Feds alone! They were, indeed, Capitalism’s facilitators, and they in fact rape Americans daily, but without them the propagandists tools and strong influence would not have been possible! Imagine America without the WWII pride of accomplishment!Imagine America without the McMansion dreams, imagine America without the days of the wild west, as depicted by Hollywood, the great whore of propaganda!Where would America be without the muscle car era! the great fire breathing V-8’s of yesteryear that made the gasoline companies so rich!Could we have survived without our greatest whore,the American Medical Establishment, the over-paid, superior class, that holds life and death over us! are they really superior to the new Chinese Medical Establishment – only time will tell!
As the late, great, American Middle Class, a creation of the Feds for the consumption of goods for their profit-mills, fades, and a new Asian Middle Class arises fully exploited by the same methodologies, but controlled by a central communist bureaucracy, and Uber Rich Capital invested in the Shanghai, Beijing, and Hang Seng markets,from America and Europe,rises, the world financial fabric is morphed into a less American-centric and more international state. This leaves the American dominance and control through the American dollar at risk! The Feds propagated these circumstances, perhaps unwittingly, and the American proletariat, the peons, the patriots will pay with their prosperity for these new circumstances. Beware the coming depression, driven by low wages astounding inflation and shortages of oil, gasoline, caused by the inability of the deflated American dollar to command oil at reasonable prices! America does not have enough oil left in the ground to drill to compensate for the dwindling world supplies and the stronger Yuan commanding a larger share! The Feds did not do this on purpose! The are as shocked as we are by the burgeoning growth in Asia and, save for massive capital flight, their capital, they would be destroyed by it, as America shrivels before it and will fade to Third World-ship much as the former U.S.S.R. has done! Yes this is possible! Russia set the precedent! World financiers profited immensely as they will in collapsing America and moving to Asia! America is not safe with her immense but foreign oil dependent military! This is part of the propagandist mythology to extract riches from the country. Feds be damned!

Carl DiMuzio

This is greenbacker Propaganda. Competing currencies without government intervention or government issued fiat, paper money.

Gold and silver coins are the peoples money. People chose it for thousands of years. Do not listen to the Progressives who call for “debt-free” money. They want congress to issue money. Do any of you truly believe the congress would be better than the FED? Abolish the fed and all legal tender laws. Let the people decide how to transact.

Freedom is not what the government gives you. Freedom is the absence of their influence.

To: “What’s Your Name” 1/13 at 3:01am

Responding to “who” got the money and “how much?”

Those are very good questions! If we, the people, were allowed to AUDIT the records, how much and to whom would certainly be much clearer. Hopefully, Ron Paul will be successful with his bid to do just this in the incoming Congress.

As for “who?” That is ANOTHER thing we all want to know! The “owners” are members of elite families and their names have been well obscured.

Most people erroneously think that the Federal Reserve is both “Federal” and a “Reserve.” It is neither. It is a lending ponzi-scheme set up before most of us were born so we don’t even know what we don’t know!

We have always just assumed that “the experts” (all on the Fed Reserve bandwagon/payroll, you can be sure) are correct that this is the best system.

If ever there was an article I would like to see “go viral,” it is this one. Thank you, author(s), for laying it out so clearly. I feel that I can email this to my many friends who have banned me from discussing much of this because it is too complicated and boring.

I’m thinking that more people are becoming less bored as they realize the very roof over their head and food in their belly, and their children’s bellies, is/are at stake.

For the record, all US President’s who were assassinated had indicated that they wanted the Treasury to print the money. You can see that taking a strong stand on this issue has proven deadly. And we wonder why it hasn’t happened before!

In response to MichaelHerrick’s allegation the Federal Reserve has it’s links back to England are actually spot-on specifically to the banking House of Rothschild, The Bank of England and their banking cabal known as “The City of London”.

Seemingly we won our independence in the late 18th century only to be slowly taken over financially during the following several hundred along with an accelerated pace post the passage of the Federal Reserve Act of 1913 and the U.S. Income Tax the same year. Coincidence…I think not!

I’m supplying a chart concerning who owns the Fed dtd 1976, but little has changed except for the failure of Lehman Bros.

We don’t need to use their funny money. It’s perfectly legal to use a different currency. The problem is finding others to accept it in trade. We could also have a couputerized barter system, similar to what some Russians are using, but again, not everyone will use it, so it hampers free trade. Before Shay’s rebellion in the early 1800s banks accepted livestock & produce in New England in exchange for coinage. The rebellion which occurred when the banks quit doing it was quickly put down with force by the government. That’s probably what would happen again if large numbers of people started using the above mentioned systems.

So many changes would have to be made in the structure of our government & how it operates before we could make any changes in the banking system that I think it will never happen. What will happen ultimately is the entire house of cards collapsing, and a number of small countries emerging; at least three; the Eastern seaboard to the Alleghenies, the middle west to the rockies or possibly to the Sierras, and the land of fruits & nuts from the Sierras to the Pacific ocean.

John

People need to read “The Web of Debt – The Shocking Truth About our Money System and How We Can Break Free” by Ellen Hodgson and pass it on to as many people as you can! The Creature from Jekyll Island is good too, but Web of Debt will be easier for people to follow. Widespread awareness is more necessary than people already in the know posting comments on blogs back and forth to each other.

Richard

Time to get real.

It has been my good fortune to meet a gentleman, twelve years ago, who claims to possess, shall we say, interesting connections. He tells me he’s apart of an exclusive think-tank which consults for the family that heads ownership of the Fed and Bank of England. Most intelligent person I’ve ever met whose long term economic forecasts have been uncanny. This person is under a strict non disclosure agreement but is allowed to share limited insights with his family for which I have been fortunate enough to be included. He explained how one family is able to control 6.5 billion people. They do it by creating distractions manipulated through the media causing ignorance and emotions to build a wall around true reality which helps conceal their agenda from the public.

Through my research and this gentleman’s insights I’ve surmised the following about power:

When you look at the top four rungs of the global power structure, relative to the US, the US, in my estimation, is number four. The other three are; 1. Banking/financial empires, 2. Major Corporations, and 3. Major Religion. The political term for these three is special interest.

When you break down the power structure within the US the top four rungs, again my opinion, are 1. Special interest, 2. Parties, 3. Self interests of the politicians and 4. We The People.

Looking at the following recent historical event one can see how this power controls, to our detriment, We The People.

I believe the reasons we went into Iraq had nothing to do with Saddam’s threats towards GHW Bush or protecting the US against terrorist attacks. The reasons we attacked Iraq were in the interests of the oil companies and the industrial military complex, using the political parties as conduits to the administration and Congress to enact the opportunity, financed by the banks, in the name of God and, ultimately, at the expense of We The People.

In order for positive change, political and economical, to occur for the citizens of the US, the interests of We The People must ascend back to the top of the US power structure where founders had envisioned them.

Dontkillmeforhavingabrain

You forgot to mention that Iraq didn’t have a central bank controlled by the Rothschilds, AKA Federal Reserve/Bank of England.

DD

If, if, if, if, if, if — too many ifs, ands and buts. It’s just hindsight and remorse. The Fed, Banksters etc., should have asked “what if” and looked at the ramifications of their (pure) greed and fraud then just maybe the US would not be in such a mess.

Too little, too late. The damage has been done and there is no going back because Main Street has not and still, is not demanding accountability.

Accountability and punishment MUST come before any regulations that the Gvt are trying to put in place.

Some analysts are saying the worst is yet to come and if that’s the case, God help Main Street and that also goes for all the countries that are in bed with the US who think things are going to turn around in their favor.

We have seen time and time again over history, empires collapse and the USA is no exception and I believe it will be noted in history, that greed, fraud and lies (Middle East war(s)) was the cause of the US’s demise.

ConcernedandStuck

It is a ponzi scheme. The bubble eventually bursts. That is why they are prepping China to be the new US, so they can start the Ponzi scheme over. If they keep doing this over and over, their dynasty will live. They are trying to keep the power in the family.

Vortex

Our debt really went off the chart when we went off the gold standard.

Boethius

President John F. Kennedy tried “routing” out the Fed by slowing replacing federal reserve notes with silver certificates and wound up dead. While a noble effort, it was not planned and executed well and he paid for it with his life.

What he tried is akin to going to a mafio leaders vacation house in a remote area, alone, flashing your badge and telling him that you are going to impound all of his belongings. What he tried should have been done with overwhelming force and bloodshed if necessary.

The uber elite have worked long and hard to cheat us out of our birthright. If anyone thinks that they are going to give it up voluntarily and voluntarily slink off to prison to pay for their sins, then you’ve got another thing coming.

Spectre

How come the “inflation chart” stops listing wars after “The Fed” was created…? It seems to me we can attribute “Wilsonianism” for much of the economic hardship we have and continue to experience.

The present system, rather, the “security” of trade and commerce between nations, is a result of U.S. military presence around the world. The fact is that the U.S. are the “police-men” of the world, and much of the world is quite fine with that. That begs the question however, why is the rest of the world content with the U.S. policing the world? The rest of the world is content with the U.S. policing the world because it means they don’t have to expend their finite resources to do so. So essentially, the rest of the world are “free-riders” on the action of the U.S. securing their trade/commerce with others. Is the U.S. billing the rest of the world for these security services? To my knowledge, overall, the U.S. does not receive anything of significant value in return (at least in a reasonable time-frame).

The U.S. is expending resources that others benefit from and don’t help pay for. It’s super-expensive to run a global security operation with a state of the art military. The rest of the world needs to start paying up or stepping up to help provide security, the U.S. economy is struggling because we are over-extended. We have run out of resources (in terms of economic output) to pay for both global security and a large welfare-state. Printing money to pay off-debt is currently the only means the government has to continue on the path until the U.S. dollar loses all credibility and becomes wortless.

The rest of the world either needs to pay the U.S. for its security services, or step up to help provide security so that the U.S. can reduce its expenses, or the U.S. needs to withdraw from having a global presence. In addition, the welfare-state needs to be drastically reduced to encourage both individual and business productivity. If nothing is done to resolve the matter, expect the U.S. dollar to lose the remaing 5% of value it has left since the other 95% of it has been lost since the creation of “The Fed.”

ConcernedandStuck

The reason for the U.S. military presence isn’t to “police” the world, but it is to guard the central banks around the world that have Rothschild ownership. There are only 3 countries that don’t have a Rothschild controlled central bank- Iran, Cuba, and North Korea. Before 9/11 there were 7, and the remaining 4 we have had a military conflict (publicly or through 3rd party), and succeeded in sneaking a central bank in. Think about it.

This is in response to “Whats your Name” & Uncle B. The question “Who owns the Federal Reserve?” First of all Article 1, Section 8 of the Constitution states that Congress shall have the power to coin (create) money and regulate the value there of. Today however the Fed which is a privately owned company, controls and profits by printing money through the Treasury and regulating value. Who actually owns the Federal Reserve Central Banks?? Rothschild Bank of London, Warburg Bank of Hamburg, Rothschild Bank of Berin Lehman Brothers of New York, Lazard Brothers of Paris Kuhn, Loeb Bank of New York, Israel Moses Self Banks of Italy, Goldman Sachs of New York, Warburg Bank of Amsterdam, Chase Manhatten Bank of New York. These bankers are connected to London Banking Houses which ultimately control the Fed. When England lost the Revolutionary War with America (Our forefathers were fighting their own government), they planned to control us by controlling our banking system, the printing of our money and our debt.

After previous attempts to push the Federal Reserve Act through Congress a group of bankers funded and staffed Woodrow Wilson’s campaign for President. He had committed to sign the Federal Reserve Act in 1913, a senator Nelson Aldrich maternal grandfather to the Rockefellers pushed the Federal Reserve act through Congress just before Christmas when much of Congress was on vacation. When elected Wilson passed the FED later. Wilson remorsefully replied “I Have Unwittingly Ruined my Country.”

Presidents Lincoln, Jackson, and Kennedy tried to stop the family of bankers by printing U.S. Dollars without charging the taxpayers interest.

The U.S. Government can buy back the Fed at any time (Per Congressional Record). The U.S. Treasury could then collect all the profit on our money instead of the 300 original shareholders of the FED. The Trillions of U.S. debt could be exchanged dollar for dollar with U.S. non-interest bearing currency when the debt becomes due. There would be no inflation, because there would be no additional currency in circulation. Personal Income Tax could be cut if we bought back the FED and therefore, the economy would expand. According to the Constitution, Congress is to control the creation of money, keeping the amount of inflation or deflation in check.

President John F. Kennedy signed an executive order in 1963 that our Government print its own currency backed by Silver. That order still stands today, right now.

Question is why isn’t our Congress doing something about this??? This is a question we need to be asking ourselves and our Government.

AB

Absolutely Brilliant. What’s the first step? Flooding Congress with letters?

AB

??

Tom E. Snyder

“Now, the only way that the U.S. government can inject more money into the economy is by going into more debt.”

This is not technically correct. The US Government has the Constitutional authority to, and does, coin money. Only the limited supply of metal is keeping them from issuing more $1 coins or, for that matter, a $5, $10, or $100 coin.

erich

If government printed debt free money instead of the Fed we would just deceive ourselves. Such action would directly inflate the money supply. We wouldn’t show debt or have interest payments but our money would loose its purchasing power with a net result not much different if not worse than now. No, the problem is unsustainable government spending, not how it is being financed.

erich

another error in need of correction:
When the Fed buys securities from the Treasury it makes a computer entry, debits its balance sheet. The sales proceeds are credited on its balance sheet, that’s why it is called a balance sheet.
There are no insane profits here, only the difference between purchase and sales price. Most of the bills and notes are held by the public and foreign governments who earn the interest. If you just print the money without creating debt you will, indeed, save the interest cost but you will debase the currency that much faster.

jim in mo

for “whatsmyname”, privately owned corporations are not required to reveal the names of their stockholders. The Board of Governors is a privately held corporation, just as the 12 FR banks are independent owned stock held corporations.

For: “who’s your daddy” and the number nerds.
The Federal Reserve is the longest running Ponzi Scheme in the history of modern day banking. Erudite discourse of the Fed’s basic Mission Statement are being tossed around like a bad salad. One of these days, Alice, someone will uncover and disclose where all this money goes; who’s getting their pockets filled; and, why this country is allowing such blatant fraud and theft.

someone

Clearly, noone who has read this article or posted anything here has ANY idea how a financial system works.
Just print more money!

Brilliant!

I wonder why noone has thought of that already?

olde reb

The way I figure it, all of the money from the auctioning of T-securities, with the Treasury acting as auctioneer, goes to the Federal Reserve—on records that are not available to Congress. That amounted to $8.4 TRILLION in 2009.

The budget of the US government last year was $2.1 trillion from taxes and $1.3 trillion in deficit spending.

The problem is obvious. The solution is not. Going back to the gold standard would still leave our money at the whim of investors, forecasters, and the gold mining industry. Gold is a commodity, much like oil. We’ve all seen how erratic oil prices can be, and if the gold mines joined together the way oil has with OPEC, they could artificially control gold’s value. This is not a viable solution.

I need help. My dad is an extreme hoarder. He is going to lose the house. I am close to calling the officials. The structure of the house is not sound. He is Haitian with ok English. I am afraid I will lose him soon. Jean-guy jlauture2k@yahoo.com. Roselle, nj

your stupid, and you dont know anything about the federal reserve. If we didnt have the federal reserve and our economy went down we would crash hard and probably not get back up again

AB

You’re*

Dave Froman

Notice on the chart how the debt skyrocketed just as Reaganomics was introduced in the 70’s

Hamza

You claim that we can print our way out of debt AND have no inflation. What are you smoking!?! This article perfectly summarizes the lack of fiscal and economic intelligence that the “End the Fed” movement has.